67% ABC members to invest more in Pakistan

KARACHI: Sixty-seven percent members of the American Business Council have plans to increase their investment in Pakistan, a survey conducted by the council has found.

ABC President Zubyr I Soomro shared the details of the survey on members’ perception of business, economic and investment climate in the country with media on Thursday. However, he admitted that no major US company came to Pakistan last year with investment plan. “Attracting foreign investment is very difficult,” he said.

He said the Pakistani government had made some progress on issues relating to intellectual property rights, but more was needed. Similarly, he said the law and order situation had improved, but the perception abroad was not good.

The survey revealed that 98 percent members were positive about Pakistan economic growth compared to 40 percent five years ago. Deviating from tradition, the ABC compared the results of 2005 survey with the results of 2000 because it used to compare the results with previous year’s results.

The external political position was deemed positive by 96 percent compared to only 21 percent in 2000. In 2005, 85 percent members were positive about the internal political situation compared to 38 percent in 2000. Over 93 percent members were positive on consistency of policies, up from 48 percent in 2000. Implementation of policies received positive response from 89 percent.

The State Bank of Pakistan received 100 percent positive response from the members while both Securities and Exchange Commission of Pakistan and the Central Board of Revenue received 98 percent positive response.

Approximately 96 percent members were positive about income tax department and 95 percent about customs department.

Thirteen percent members of the ABC were not satisfied with Export Promotion Bureau while 23 and 28 percent members were unhappy with labour and manpower ministry and health ministry, respectively. Majority of members reported growth in revenue and profits last year.

The ABC members have investment of over $1 billion in Pakistan and they contribute sizable amount to national exchequer every year as direct and indirect taxes. Last year’s contribution was about Rs 35 billion, eight percent of total taxes collected by the government.

They ABC members employ 22,000 Pakistani people directly who support 100,000 dependents and indirectly employ over half a million people with agents, distributors etc. staff report